AgenCY For Specialized Monitoring

Govt. of India, in order to ensure proper utilization of Bank funds and keep a check / prevent diversion of funds, has introduced Agency for Specialised Monitoring (ASM) mechanism. Under ASM, Banks are to appoint specialized monitoring agencies to closely track the activities of the debtor (borrowers) including purchase/invoices, actual production vis-à-vis projections, high value transactions/ payments as regards beneficiaries and purpose, cash inflow/ outflow. ASM will be applicable for all debtors where exposure is above INR 250 Crores.

The Scope of work will generally include: 

  • Concurrent Review and Monitoring Procedures (for Working Capital)
  • Concurrent Review and Monitoring Procedures (for Term Loan); preferably deployed when there is delay in implementation - ASMs for large accounts should be engaged in order to ensure proper monitoring of project implementation as per schedule and utilization of funds.
  • Concurrent cash monitoring
  • Fund Flow Analysis
  • Non-Cash Parameters